What is the primary objective of Environmental and Social Auditing?
a) To increase company profits
b) To assess the impact of business operations on society and the environment
c) To calculate tax liabilities
d) To determine employee performance
Environmental auditing is primarily concerned with:
a) Financial performance
b) Compliance with environmental laws and sustainability practices
c) Employee satisfaction
d) Marketing strategies
What is the main focus of a Social Audit?
a) Evaluating financial records
b) Assessing corporate social responsibility (CSR) initiatives
c) Measuring stock performance
d) Calculating company revenue
Which organization sets international environmental standards?
a) International Accounting Standards Board (IASB)
b) International Organization for Standardization (ISO)
c) Financial Accounting Standards Board (FASB)
d) Securities and Exchange Commission (SEC)
The ISO standard related to environmental management systems is:
a) ISO 9001
b) ISO 14001
c) ISO 27001
d) ISO 50001
Which of the following is NOT a component of an environmental audit?
a) Compliance audit
b) Risk assessment
c) Supply chain management
d) Impact assessment
Social auditing primarily evaluates:
a) Stock market performance
b) Company tax liabilities
c) Corporate social responsibility (CSR) efforts
d) Production efficiency
A major benefit of environmental auditing is:
a) Increasing short-term profits
b) Ensuring regulatory compliance and sustainable practices
c) Avoiding employee appraisals
d) Improving advertising strategies
Which report is often used in social audits?
a) Balance sheet
b) Cash flow statement
c) Sustainability report
d) Inventory report
Which law in Pakistan governs environmental protection?
a) Companies Act 2017
b) Environmental Protection Act 1997
c) Income Tax Ordinance 2001
d) Labor Law 2005
What is the role of an external auditor in an environmental audit?
a) Review financial transactions
b) Assess environmental compliance and sustainability
c) Manage employee relations
d) Improve marketing strategies
The concept of the “Triple Bottom Line” in sustainability includes:
a) Profit, Loss, and Revenue
b) People, Planet, and Profit
c) Cost, Market, and Demand
d) Expense, Revenue, and Tax
Which of the following is an example of corporate social responsibility (CSR)?
a) Reducing product prices
b) Implementing waste management policies
c) Increasing employee salaries
d) Expanding business operations
Which is a key tool for measuring environmental impact?
a) Environmental Impact Assessment (EIA)
b) Income Statement
c) Marketing Analysis
d) Demand Forecasting
What is a Green Audit?
a) Financial audit focusing on environmental risks
b) An environmental audit assessing a company’s ecological impact
c) An internal HR assessment
d) A tax compliance audit
Which international framework focuses on sustainability reporting?
a) International Financial Reporting Standards (IFRS)
b) Generally Accepted Accounting Principles (GAAP)
c) Global Reporting Initiative (GRI)
d) International Accounting Standards (IAS)
What is one of the main purposes of social auditing?
a) Reducing marketing expenses
b) Enhancing transparency in corporate social responsibility activities
c) Increasing the CEO’s salary
d) Maximizing dividends
What is the best way for a company to ensure compliance with environmental regulations?
a) Ignoring minor infractions
b) Conducting regular environmental audits
c) Increasing social media promotions
d) Reducing employee training
Which of the following is a key benefit of social auditing?
a) Higher employee turnover
b) Improved stakeholder trust and transparency
c) Reduced environmental responsibility
d) Increased financial fraud
Which organization is responsible for sustainability disclosures in financial reports?
a) Financial Accounting Standards Board (FASB)
b) International Sustainability Standards Board (ISSB)
c) International Monetary Fund (IMF)
d) Federal Reserve Bank
An environmental management system (EMS) helps businesses:
a) Reduce tax payments
b) Improve sustainability and compliance with regulations
c) Avoid social responsibilities
d) Increase employee absenteeism
What is the main goal of environmental sustainability?
a) Maximizing corporate profits
b) Minimizing environmental impact for future generations
c) Reducing workforce size
d) Increasing advertising budget
Which of the following is a major environmental risk?
a) Employee training programs
b) Carbon emissions and pollution
c) Increased marketing expenses
d) Lower stock prices
